All of us listen so much about the cryptocurrency and its usage being done for the various transactions, but we still don’t know the basics of this currency and how it is transacted, and under which regulatory board or exchange their indices are maintained. I thought let us discuss the simple basics of the same and try to understand what exactly it is and how it affects the transactional market internationally.

1. “As a layperson -let us understand-
cryptocurrency and how it works?”
Ravi Speaks: Updated on 20.03.2022
Various Cryptocurrencies

2. All of us listen so much about the cryptocurrency and its usage
being done for the various transactions, but we still don’t know the
basics of this currency and how it is transacted, and under which
regulatory board or exchange their indices are maintained. I
thought let us discuss the simple basics of the same and try to
understand what exactly it is and how it affects the transactional
market internationally. I shall take it up in two parts. In today’s
part, we shall try to understand the basics and their functioning,
whereas in part two we shall discuss the various cryptocurrencies
being transacted internationally as per their cumulative market
capital captured.
What is a cryptocurrency: -
A cryptocurrency is a payment that can be exchanged online for
goods and services. Many companies have issued their currencies,
often called tokens, and these can be traded specifically for the good
or service that the company provides. Cryptocurrencies work using
a technology called the blockchain.

3. Cryptocurrency is a type of currency that’s digital and decentralized.
Cryptocurrencies can buy and sell things, and their potential to
store and grow value has also caught the eye of many investors.
Instead, owners hold cryptocurrency in a digital wallet and buy or
sell through an online exchange.
Is this digital money the real one?
A cryptocurrency is real money that can be used for payments.
Cryptocurrencies, such as bitcoin and Ethereum, made payments
without relying on traditional modes such as currency notes, debit
cards, credit cards, or checks.
With this currency, the power lies with the currency holder: -
The main point of cryptocurrency is to fix the problems of
traditional currencies by putting the power and responsibility in the
currency holders’ hands. They each also attempt to solve one or
more real-world problems.

4. Probably the biggest concerns with cryptocurrencies are the
problems with scaling that are posed. While the number of digital
coins and adoption is increasing rapidly, it is still dwarfed by the
number of transactions that payment giant, VISA, processes each
day.
Paypal also has entered cryptocurrency: -
PayPal launched its cryptocurrency service in the US, in October,
hoping to make them more accessible to a wider audience. “The
tokens and coins have been around for a while but you had to be a
relatively sophisticated user to access that,” a PayPal spokesperson
told CNBC.
What is the Blockchain System: -
Let us try to understand in simpler terms how the Block system
works in cryptocurrency transactions:-
· Using the example of the Bitcoin system, the blockchain, also
known as distributed ledger technology, works:

5. · The purchase and sale of Bitcoin are recorded and transmitted to a
network of powerful computers, the so-called nodes.
· This network of thousands of nodes around the world competes to
confirm the transaction using computer algorithms.
· This is known as bitcoin mining. The miner who first completes a
new block is rewarded for their work with Bitcoin.
· These rewards are paid through a combination of reinvented
bitcoins and network fees that are passed on to buyers and sellers.
· Fees may increase or decrease depending on the volume of
transactions.
· After the purchase is cryptographically confirmed, the sale is
added to a lock on the distributed ledger.
· Most of the network has to confirm the sale.

6. · The block is permanently chained with all previous Bitcoin
transaction blocks using a cryptographic fingerprint known as a
hash, and the sale is processed.
· The concept of blockchain technology first appeared in academic
papers from 1982 in a dissertation dealing with the design of a
distributed computing system that can be configured, maintained,
and trusted by mutually suspicious groups. But it was an article by
the pseudonym Satoshi Nakamoto from 2008 titled “Bitcoin: A
Peer-to-Peer Electronic Cash System” that put an academic theory
into practice.
Blockchain Analysis Software — Chainalysis:-
Founded by Michael Gronager, Jonathan Levin, and Jan Moller in
2014, Chainalysis provides cryptocurrency exchanges, international
law enforcement agencies, and other clients with blockchain
transaction analysis software to help them comply with regulations,
assess risk, and identify illicit activity. In the activity in Bitcoin,
Ethereum & Other Markets. The risk is assumed to be reduced by

7. the appointment of ‘Crypto Forensics’, ‘Crypto Investigation’ &
‘Crypto Compliance’.
According to recent findings from Chainalysis, Vietnam, India, and
Pakistan dominate the Global Crypto Adoption Index for the second
year in a row. Rather than gross transaction volume, the index rates
154 nations based on peer-to-peer exchange trading activity.
Still, uniform international laws needed to be strengthened: -
Despite its use for buying goods and services, there are still no
uniform international laws that regulate bitcoin. Many major and
developed countries allow the use of bitcoin, such as the U.S.,
Canada, and the U.K. Other countries, however, are opposed to any
use of bitcoin, including China and Russia.
Investments are always risky, but some experts say cryptocurrency
is one of the riskier investment choices out there, according to
Consumer Reports. However, digital currencies are also some of the
hottest commodities.

8. Hot in transaction-different Cryptocurrencies: -
From Bitcoin and Ethereum to Dogecoin and Tether, there are
thousands of different cryptocurrencies, which can make it
overwhelming when you’re first getting started in the world of
crypto. To help you get your bearings, these are the top 10
cryptocurrencies based on their market capitalization or the total
value of all the coins currently in circulation.
· Bitcoin (BTC) Market cap: Over $821 billion. …
· Ethereum (ETH) Market cap: Over $353 billion. …
· Tether (USDT) Market cap: Over $68 billion. …
· Cardano (ADA) Market cap: Over $67 billion. …
· Binance Coin (BNB) Market cap: Over $64 billion. …
· XRP (XRP) Market cap: Over $44 billion. …

9. · Solana (SOL) …
· USD Coin (USDC)
Tomorrow in part-2 we shall discuss the top-ranking
cryptocurrencies in the transactional business internationally.